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University of Pennsylvania Law SchoolPenn Law: Legal Scholarship Repository

Faculty Scholarship

2004

Te Role of Government in CorporateGovernanceCary CoglianeseUniversity of Pennsylvania Law School , cary_coglianese@law.upenn.edu

Elizabeth K. Keating

Michael L. Michael

Tomas J. Healey

Follow this and additional works at:h p://scholarship.law.upenn.edu/faculty_scholarshipPart of the Antitrust and Trade Regulation Commons ,Business Administration, Management,

and Operations Commons ,Business Law, Public Responsibility, and Ethics Commons

,Corporationand Enterprise Law Commons

,Economic Policy Commons

,Economics Commons ,Law andEconomics Commons ,Legal Studies Commons , and the Work, Economy and OrganizationsCommons

is Article is brought to you for free and open access by Penn Law: Legal Scholarship Repository. It has been accepted for inclusion in Faculty Scholarship by an authorized administrator of Penn Law: Legal Scholarship Repository. For more information, please contactPennlawIR@law.upenn.edu.

Recommended CitationCoglianese, Cary; Keating, Elizabeth K.; Michael, Michael L.; and Healey, omas J., " e Role of Government in CorporateGovernance" (2004).Faculty Scholarship.Paper 1243.h p://scholarship.law.upenn.edu/faculty_scholarship/1243

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T E R E G VER MENT NC R R TE G VERN CE

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gr te l y c o e ge s ppo t o e Ce te or B si ess Govee s Co po te Soci Respo sibi i y i i tive e G ob Ge er

Po cy iti tive e e Yor Stoc Exc ge o tio CRE We lso pp eci te rese rc ss st ce ro Be Gerber Gop lR a el s e p l co e ts o e rlie r o M rc er-se P l o ge Bob Stee Hope S eele , R y Yo g s ell s l p ticip co e e ce o g e by t e Reg l to P icy Prog M y 4 is ticle represe t t e t o s' e or to s ri e sy

esize t e perspectives expresse t co ere ce. e v e s expresseo ot ecess ily re ect t ose o its t o s t e Reg to y Po icy P ogr

t e Ce te or B si ess Gove e t t e Ke e y Sc ool o Go e

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* ' Se io e lo Ce ter o B si ess Gove e t Jo . Ke -e y Sc ool o Gove e t H v r U ivers y** ct ec er Se io ello , Ce e or B si ess Gover -

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to d sc ss t ree f da e tal p bl c pol c c all es ra sed brece corporate ab ses.

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me t s ares re la or a or a d o ers t t ar o so o e me al self re lator st t t o s Self re la oas bee pro e e operat o of sec r t es arke s asell as e o ers t of t e acco a d le al profes-

s o s Are ese ex st self re latory arra e e ts sc e t? S o ld o er e t c a e ts o ers t of s lf re la-tor st t o s? Or s o ld o er e t ass m a r ater a dmore d rect role re lat ?

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Most broadl re la ors face a c o ce be ee pr c ples a dr les S o ld re lator sta dards art c late broad oals a dp rposes; d be a or t ro e ad ere ce o e eralpr c ples? Or s o ld re la o s take e for of spec cr les t a tell co pa es a d e r la ers a d a d ors exac l

at s acceptable a d accep able? R les a e e r rt esa d t e a e bee del sed b e also a allo corpora e actors o d a s o co pl e le er of t e la

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c e r les or pr c ples e a e adop ed s ore a

ress e e force e eeded? S o ld e force e of c alstar e s d d al perpe ra ors or s o ld e also o af ee corporat o s c e ork W e s o ld re la ors

p rs e cr al as opposed o c l) sa c o s? F rt er ores ce bot t e s a e a d federal o er e s a e r sd c oo er p bl cl traded corpora o s e force e o c als sco s r c el deal r sd c o al co pe o

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hi co ideri h e ec ive e o el re la ory or aa io a olicy aker a well a heir e ec ive e a e orc-er . al o call or care l eval a io o he rece r c ralcha e i el re la ory or a i a io Wha i ac will

he e cha e have o he cred ili y a d e ec ive e o elre la io

he i e o re la or de i deci io aker eedo der a d e er wha ake di ere de ree o eci c-

i y a d e erali y "ri h or ar ic lar y e o re la oryro le . hey al o eed o a e whe her cer ai hy rid y -e ca overco e o e o he li i a io o r le or ri cile alo e.

Fi ally, o he i e o e orce e a e a d ederal o -cial ho ld a aly e why o e i divid al a d or a i a ioadhere re o i ly o reg la o a dard a d why o herdo o S ch a aly i wo ld hel e ha ce over e a il

i r e o i al e orce e i ead o der or over eorce e .he e ha over e ha already ake , a d will

do edly co i e o ake i he wake o he rece ca dalwill a ec o h he i e ri y a d rod c iv y o he ericaeco o y he cce o he e e or will e ade orelikely wi h care l a e io o he ki d o i e ar edi hi ar icle, a d wi h r her co r c ive di c io a o

he a y co i e cie a ec ed y he l i le role haover e lay i cor ora e over a ce